Project description
and objectives:
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The EBRD proposes to invest US$ 5 million as part of a US$ 29 million issue of convertible preferred redeemable shares (CPRS) of Bank TuranAlem (BTA). The CPRS will count as Tier II capital.
The project aims to increase supplementary (Tier II) capital of BTA, which will allow the bank to expand its product range and increase lending operations to the real sectors of the economy.
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Transition impact:
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The increased capital base will allow BTA to compete more effectively in the market place and will serve the real economy through increased borrowing opportunities and availability of longer-term financing. CPRS investors will gain representation on BTA’s Board, which should strengthen the bank’s corporate governance.
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The client:
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BTA is one of the major banks in the Kazakhstani financial sector. The bank was formed in 1997 through a merger of two state banks. The bank was fully privatised after the merger and has been 100 per cent privately owned ever since. BTA is a fully licensed commercial bank offering a complete range of banking products in both tenge and foreign currencies.
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EBRD finance:
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US$ 5 million (€5.8 million) participation in BTA’s CPRS issue, which will qualify as Tier II capital in accordance with the standards of the Bank for International Settlements. Other international financial institutions, including the International Finance Corporation (IFC), Deutsche Entwicklungs Gesellschaft (DEG), Netherlands Development Finance Company (FMO) and Raiffeisen Bank Austria are participating in the transaction.
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Total project cost:
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US$ 29 million (€33.7 million).
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Environmental impact:
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BTA will implement the EBRD’s environmental procedures for local banks across the full range of its operations. The bank’s customers will be required to comply, at a minimum, with local national/health, safety and environmental regulations and standards.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Mike Taylor, Operation Leader: taylorm@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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